Senator David Norris' address to Seanad Eireann (the Irish Senate)

In Sept. 2007, fourteen months before Ireland's bank bailout, I resigned from my position as the Risk Manager of UniCredit Bank Ireland. I did that in order not to incriminate myself. I have spent the last 4 years seeking justice. On Feb. 23rd., 2010, I was fortunate to have Senator David Norris raise the matter in Seanad Eireann (the Irish Senate), and request a response from the Minister of Finance, Mr. Brian Lenihan. Senator Norris concluded by stating that:

"...there is ministerial responsibility in this matter.
This is a grossly serious matter which has been reported to the Financial Regulator. A man has lost his job as a result. He honourably resigned. The degree of breach was 40 times the accepted margin. This is a disaster. If we are not prepared to face the issue and investigate it when it has been laid before the House, there is absolutely no hope for the financial system or its reputation worldwide...How can the Financial Regulator investigate himself? He was in breach of his responsibility."

In Nov. 2011, Emma Alberici, Europe correspondent for ABC TV, told my story as part of her documentary 'Going Rogue' which featured Nick Leeson and Sir John Vickers among other interviewees. It is ironic that at a time when the Irish tax-payer is bailing out un-secured bond holders, my story which occurred in Dublin, is deemed of interest to the Australian TV license payer. Please click on 'play video' on the following link:

Monday, 25 July 2011

Bank of Ireland collapse confirmed- UPDATED

From Golem XIV:

This morning this from Reuters saying that "unidentified" investors have bought a €1.1 billion stake in BoI.

Why unidentified?

The bank is calling it a vote of confidence in the irish Economy. Unidentified investors have confidence in Ireland's economy. Confidence that the Irish economy will what? Recover in a way that benefits the many or that its further collapse will benefit the few?

DUBLIN, July 25 - Ireland sold a 1.1 billion euro stake in Bank of Ireland to a group of unidentified investors in a deal that will keep the country's largest bank out of state control, the government said on Monday.

The government had been widely expected to take control of Bank of Ireland, the last domestic lender outside of state ownership, after it agreed to underwrite a rights issues, whose results are due on Tuesday.

After the sale and rights issue, the government will own a maximum of 32 percent in the bank, the finance ministry said.

"The bank is very pleased to see this major endorsement ... and the confidence which these investors share with the bank in the future for the Irish economy," Bank of Ireland said in a statement.

Under the deal the investors will initially purchase 241 million euros worth of the state's shareholding. They will then purchase the remainder of up to 882 million euros after regulatory approvals. In all they will purchase 4.2 billion ordinary shares.

The government said the sale would not involve any additional risk sharing for the government.

Depending on the results of the rights issue, Ireland will end up with between 15 and 32 percent of the bank. Existing shareholders will hold between 31 and 71 percent and the new investors will hold between 14 percent and 37 percent.

The sale will reduce the size of a state capital injection into the lender required under a IMF/EU bailout deal by 1.1 billion euros to a total of 2.4 billion euros.

The government will thus be able to recapitalise the bank without recourse to EU/IMF funds, the finance ministry said.

Dublin has closed two of its six domestic lenders, merged another two state-controlled institutions and will soon take over a fifth as it seeks to draw a line under a banking crisis that forced the former Celtic Tiger economy into an EU-IMF bailout. (Editing by David Holmes)